1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nalin [4]
3 years ago
7

On July 1, based on prior experience, Rocky estimated there is a 40% chance it will earn the bonus for July tours. It guided a t

otal of 10 days from July 1–July 15. On July 16, based on Rocky’s view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 90% chance it would earn the bonus for July tours. Rocky also guided customers for 15 days from July 16–July 31. On August 5 Rocky learned it did not receive an average evaluation of "excellent" for its July tours, so it would not receive any bonus for July, and received all payment due for the July tours.
Business
1 answer:
Alexxandr [17]3 years ago
6 0

Answer:

a)

Account receivable is $28,000

Service revenue is $28,000

b)

Account receivable is $42,000

Bonus receivable is $7,000

Service revenue is $49,000

c)

Account receivable is $70,000

Bonus receivable is $7,000

Service revenue is $7,000

Explanation:

Rocky Guide Service provides guided 1-5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $2,800 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $280 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $2,800 per day and any bonus due are paid in one lump payment shortly after the end of each month.

a) On July 1, based on prior experience, Rocky estimated there is a 40% chance it will earn the bonus for July tours. It guided a total of 10 days from July 1–July 15.

b)  On July 16, based on Rocky’s view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 90% chance it would earn the bonus for July tours. Rocky also guided customers for 15 days from July 16–July 31.

c) On August 5 Rocky learned it did not receive an average evaluation of "excellent" for its July tours, so it would not receive any bonus for July, and received all payment due for the July tours.

a) During July 1–July 15, Rocky estimated a less than 50% chance (i.e 40%) it will earn the bonus for July tours. Using most likely approach since the chance of expecting a bonus is 40% which is less than 50%, Rocky would not receive any bonus.

Therefore: Revenue = $2800 per tour day × 10 days = $28000

Total revenue =  Revenue = $28000

Total revenue is $28,000

Account receivable is $28,000

Service revenue is $28,000

b)  During July 16–July 31, Rocky estimated more than 50% chance (i.e 90%) it will earn the bonus for July tours. Using most likely approach since the chance of expecting a bonus is 90% which more than 50%, Rocky would receive the bonus.

Therefore: Revenue = $2800 per tour day × 15 days = $42000

Bonus earned = $280 per tour day × (10 + 15) days = $7000

Total revenue =  Revenue + Bonus earned = $42000 + $7000 = $49000

Total revenue is $49,000

Account receivable is $42,000

Bonus receivable is $7,000

Service revenue is $49,000

c) On August 5, Rocky learned he would not receive any bonuses and receives only $60000 (i.e $42000 + $28000) in account receivable. Rocky reduces his bonus to zero and records the offsetting adjustment.

Account receivable is $70,000

Bonus receivable is $7,000

Service revenue is $7,000

You might be interested in
Domain names that end in .edu are:
marysya [2.9K]
Edu means education so normally it is a college or other school website
6 0
3 years ago
Which sales channel incentivizes every member of its network?
bulgar [2K]

Answer:

Channel incentives are a behavioral modification tool that influence channel partners – such as dealers, contractors, resellers, and vendors – to align their behaviors with overarching business goals. These behaviors could include: Increasing overall sales volume. Increasing sales for high margin products

Explanation:

7 0
3 years ago
Read 2 more answers
A detailed plan for the future that is usually expressed in formal quantitative terms is known as a:
Kipish [7]

Answer: (A) Budget

Explanation:

 Budget is one of the type of financial plan that is create according to our requirement and also budget.

A budget is one of the type of document  that is used for describe the detailed plan in the future and it is usually expressed into the quantitative terms.

 The main objective of the budget is to creating a proper plan based on the expenses, revenue, liabilities and the cost in an organization and it also helps in balancing our expenses with the income.    

 Therefore, Budget is the correct answer.

5 0
3 years ago
Blue Spruce Corp. accumulates the following cost and net realizable value data at December 31. Inventory Categories Cost Data Ne
Kruka [31]

Answer:

<u>Company's total inventory</u> 30,850

Camaras: 10,960

Camcorders: 8,850

DVDs: 11,040

Explanation:

<u>Camaras: </u>

cost: 10,960

net realizable value: 12,060

<u>Camcorders: </u>

cost: 8,850

net realizable value: 9,170

<u>DVDs: </u>

cost: 12,100

net realizable value: 11,040

<u>Company's total inventory</u>

10,960 + 8,850 + 11,040 = 30,850

We must pick between the historic cost or the net realizable value the lower. The reasoning behind this is the conservatism accounting principle to keep the assets valued at minimum.

3 0
3 years ago
A corporation has $7,000,000 in income after paying preferred dividends of $500,000. The company has 1,000,000 shares of common
Finger [1]

Answer:

Price earning ratio= 8  times

Explanation:

Price earning ratio = Price per share /Earnings per share

Price per share = 56, EPS =?

Price per share =56, EPS = Total earnings available to ordinary shareholders/Number of shares

7,000,000/1,000,000= $7  per share

Price earning ratio = 56/7= 8  times

Price earning ratio= 8  times

                         

8 0
3 years ago
Other questions:
  • 40 pts
    5·2 answers
  • Oscar and Julia can both produce either bananas or coffee. Oscar can produce either 16 pounds of coffee and 0 pounds of bananas
    11·1 answer
  • You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly payments of $90. However, the
    11·1 answer
  • A banking system with a reserve ratio of 20% and a change in reserves of $1 million can increase its total demand deposits by:A.
    5·1 answer
  • Using advances in technology to maintain databases of customer information is more important for firms involved in mass marketin
    12·1 answer
  • When moving from Point C to Point D on Nation X's PPF, the cost of 1 more Computer is ____ Agricultural products not produced. E
    6·1 answer
  • during the 1980's, the price of one share of Johnson and Johnson stock rose from $17 1/4 to $56 1/8. how much money would you ha
    8·1 answer
  • A busy food pantry works hard each holiday season, but employees are completely exhausted afterwards. In addition, the stock is
    6·1 answer
  • g Bob is a wheat farmer, but also likes to give fiddle lessons. One spring day, Bob faces a choice: spend ten hours planting whe
    13·1 answer
  • While everyone's personal financial goal will be to their situation, the means for achieving them will be similar. what is one o
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!